Staff told commissioners water and reclamation funds face rising costs and debt; billing data show the average residential user is closer to 3,000 gallons, and staff recommended keeping average customer impact under $10 while offsetting via higher top rates. The panel requested further modeling and an informational meeting on the water supply project.

Staff outlined proposed 2027 utility rate changes to support the Red River Valley Water Supply Project, including a new average $3.15 monthly water-supply fee, phased-in block changes and an overall model staff say needs an average $14 residential increase to rebuild reserves; commissioners asked for more granular $1-revenue yield and multi-year scenario modeling.